Battery Storage to Beat Load Shedding

Since 2007, South African businesses have been burdened with the reality of a national power shortage that led the government to implement load shedding - a means of reducing pressure on the grid when demand exceeds capacity. The solution was intended to be a temporary relief on the country’s supply, however, it seems to have become the core strategy with which the issue is being addressed.

The need for diversified power sources and alternative generation methods is now more crucial than ever as the impact of load shedding on South Africa’s emerging economy continues to intensify.

Energy storage, such as solar batteries, offer a future-focused approach to mitigating the effects of load shedding on businesses.

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South Africa’s Load Shedding History

While load shedding is carried out when there is an abrupt rise in electric power demand or in cases where a turbo-generator shuts down due to an unexpected fault, the reason it is necessary in the first place goes deeper into South Africa’s energy history.

As South Africa’s population was expanding and its economy burgeoning on the international stage in the late 90’s, the Department of Minerals and Energy anticipated an expanding need for energy, which would require early intervention and preparation for the growth to come.

In 1998, the Department warned that without plans to construct more power stations and consistently maintain those already in use, The Electricity and Supply Commission's (Eskom) generation capacity surplus would be completely utilised around 2007. The government ignored the warning, failing to understand the urgency of investing more in its power stations at the time. As predicted, this led to a national supply shortage in 2007 and thus, to prevent the power grid from collapsing, Eskom announced that they would have to implement a blackout schedule, known as load shedding.

The power utility has had to work at maximum capacity, uninterrupted, to meet South Africa’s power demand. Any sudden pressure or damage to equipment thus results in the only option being to reduce the load on demand.

In 2007, construction began on new energy generation units at Medupi and Kusile in Limpopo Province, however, design defects that were only discovered much later in the process meant that any proposed relief to the already-strained system would be delayed by an estimated 5 more years. Now, in 2022, the power units are yet to be completed and are already reaching a combined R300 billion over the original budget. Envisioning a time where load shedding will no longer be necessary in South Africa is becoming increasingly challenging.

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Impacts Of Load Shedding On Businesses

Although load shedding impacts almost everyone in South Africa, businesses can feel its effects the most. Once the power is cut, production is immediately slowed due to paused equipment and processes. Internet connectivity issues is another concern, which, following the outbreak of the COVID-19 pandemic in 2020, has become an important factor in business functioning. Daily targets cannot be met and paying salaries while workers cannot work results in an overall loss of profit.

Furthermore, the sudden surge of electricity when the power returns can cause damage to expensive electronics, and lowered security due to failed burglar alarms puts businesses at further risk of heavy losses. Many smaller businesses have had to close their doors due to load shedding, as they have battled to keep up with the number of hours and days they were unable to operate without power.

Not only does load shedding have a current impact on businesses, it affects the performance of South African businesses in a fast-paced future. As technological advancements continue to develop exponentially on a global level, businesses are in danger of losing out on opportunities that may improve their efficiency and reach because of the unreliability of the power grid to consistently support virtual technology.

When individual businesses suffer, the South African economy suffers. Load shedding is costing the country millions with every hour the power is out. It was estimated that in 2020, the blackouts cost South Africa’s economy R 500 million per stage, per day. In 2021, PwC South Africa valued the adverse impacts of load shedding in real GDP growth at 3.1 percentage points, equivalent to the loss of 400 000 potential jobs. In a country where unemployment and poverty rates are already critical, this number is not something that can be ignored.

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Reducing Reliance On The Grid

The key to reducing the ripple effect that load shedding can have, is municipalities diversifying their electricity supply and businesses having the opportunity to opt for a provider of their choice.

Wheeling, where independent power producers (IPPs) sell their electricity directly to consumers, is a promising proposition, however, it lacks full support from the South African government. The South African government has a policy in place that only allows IPPs to sell power to Eskom, which is controlled through the application of generation licences. This does not address the risk involved in the whole country being reliant on one power distributor and only offers short-term relief from the national power shortage.

The City of Cape Town has a court case underway to challenge the Minister of Energy and the National Energy Regulator of South Africa (Nersa) for the right to purchase renewable energy directly from IPPs.

Candi’s Battery Solutions

candi solar offers battery solutions to aid in mitigating the harmful effects of load shedding on business operations. There are two key battery solution offers, namely diesel generators and lithium-ion battery energy storage systems (BESS).

Diesel generators have been a popular substitute for power supply to many businesses due to their relatively low starting costs and efficient engines. In the long-term, however, fluctuating diesel prices, maintenance, and securing the means to safely store diesel on the premises can accumulate to become quite an expense.

More recently, BESS has gained a lot of traction. With the growing production and popularity of electric vehicles, battery technology has become increasingly affordable and can genuinely compete in the market alongside generators. Batteries require little to no maintenance and can be used for a number of money-saving purposes outside of simply being an alternative power source during load shedding.

candi offers lithium battery storage solutions with two main options:

- Total business back-up, where all systems and equipment requiring electricity will continue to be powered during load shedding.

- Critical device back-up, which supports only the aspects of the business that are critical to production (i.e. extras like air conditioning would not be included).

The benefits of relying on batteries in the long-term far outweigh any starting costs. Batteries ensure that your business remains running during load shedding, protecting equipment and maintaining production rates to allow the business to continue growing its profit margin.

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Additional Benefits of Batteries

Eskom penalises businesses during their peak energy usage by charging higher rates. Batteries can reduce this cost through peak load shaving and energy arbitrage. Peak load shaving is a process that allows for quickly reducing power consumption from the grid for a short period of time by switching to battery power. Energy arbitrage involves purchasing more electricity during off-peak periods, storing it in a BESS, and discharging it during peak periods. Industries with a ‘Time of Use’ tariff structure can particularly benefit from these tactics, since they would be able to charge and discharge at any point.

Many municipalities still make it too uneconomical to sell back excess solar power generated during the day, which is where a BESS can also be useful. Power can be stored and used at a later stage, instead of being lost. “Solar power is use-it or lose-it, so if you generate any extra, it is better to store for later use,” explains Daniel Willemse, Product Engineer at candi.

Ultimately, battery storage not only solves the current issues that load shedding is presenting, it also offers a long-term and far more sustainable option for power generation and usage in the future. While national policies are making it challenging to buy directly from IPPs, BESS gives businesses the opportunity to rely on their own power source in the midst of irregular power cuts and a future where non-renewable energy is fading.

candi’s solution is all about empowering businesses by helping them grow their independence from the grid and shifting their reliance to renewable energy instead. At this point, there is no clear timeline regarding how long load shedding will still be necessary. Waiting for a solution to South Africa’s power shortage may cost your business a large portion of what you have already built, which makes finding an alternative route the safest option in ensuring business continuity.

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Contact us to find out more about how our battery solutions can boost your business operations when the national grid is down and help you prepare for a future unaffected by load shedding.

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